00:00Welcome to the video from the Car Magazine Tuning Blog.
00:09On the exciting topic of the possible merger between Honda and Nissan,
00:13two of the best-known Japanese car manufacturers.
00:17The two companies are currently considering a merger
00:19in order to be better positioned in the increasingly competitive electric car market.
00:25Plans for this merger are already well-advanced
00:28and could also include the manufacturer Mitsubishi,
00:30in which Nissan is the main shareholder.
00:35The aim of the merger is to create the third-largest automotive group in the world,
00:39just behind Toyota and Volkswagen.
00:42Especially in view of the dominant influence of Tesla and Chinese manufacturers
00:46in the electric vehicle market, Honda and Nissan want to join forces.
00:53According to the plan,
00:54the new joint holding company is to debut on the Tokyo Stock Exchange in August 2026.
01:00Both companies expect that the merger could generate sales of the equivalent of $191 billion
01:05and an operating profit of $9.2 billion.
01:12Another important argument in favor of this merger
01:14is the synergy effects that both companies expect from the merger.
01:17Honda CEO Toshihiro may be emphasized that these effects could be greater than originally assumed
01:25and that the transition to electromobility could be made more efficient as a result.
01:32The aim is not to save Nissan,
01:34but to become stronger together and better meet the challenges facing the industry.
01:38The Japanese government expressly supports the merger,
01:43as it wants to secure Japan's status as a leading automobile manufacturer.
01:50Nissan is currently facing major financial challenges
01:53and is working to reduce debt and increase sales.
01:59Honda has made this a condition for the merger
02:01and the two companies are already in a strategic partnership.
02:07Last year,
02:08a collaboration on the development of electric vehicles and software was agreed,
02:12which was later extended to Mitsubishi.
02:17In addition,
02:18Nissan is struggling with shrinking sales
02:20in the important markets of China and the USA
02:22and is planning to reduce global production capacity by 20%.
02:289,000 jobs are to be cut.
02:31Honda also recently reported
02:33declining sales figures in China
02:35and lower profits than expected.
02:38A merger of these two big names in the automotive industry
02:41could have a lasting impact on the industry.
02:45It would be the biggest deal
02:46since the merger of Fiat Chrysler and PSA in 2021,
02:50which created Stellantis.
02:52In addition to economic aspects,
02:55the companies also emphasize the idea of innovation.
02:59Joint research and development
03:00could accelerate the transformation towards sustainable mobility.
03:05Both carmakers have recognized that cooperation
03:07is the key to keeping up with global competition
03:10and holding their own against giants like Tesla.
03:15Major French shareholder Renault,
03:17which holds shares in Nissan,
03:18has reportedly shown itself open to the talks.
03:21This could further boost the merger negotiations.
03:26However,
03:26there is also skepticism as to whether a merger of this size
03:30can meet all expectations.
03:33Ultimately,
03:34the decisive factor will be
03:35how the companies implement their synergies
03:37in concrete terms
03:38and whether the desired effects are actually achieved.
03:40The merger could also not only strengthen
03:45the company's position in the electric vehicle market,
03:48but also drive innovation in software development.
03:53Given the major challenges facing the industry,
03:56this step could represent a turning point.
03:58was the information on the potential merger of Honda and Nissan informative?
04:03then please subscribe.
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